Internet bank Egg said it was on course to break even later this year despite reporting losses of £155.3 million during 2000.

The online operation, which was hatched by Prudential in 1998, said it would achieve the target it had set itself when it floated last year.

Egg said its customer base had risen 70 per cent to 1.35 million by the year-end, while 100,000 new customers had logged on since January.

Chief executive Paul Gratton said the widening of the pre-tax losses from £149.7million in 1999 had been expected.

He added: "Our full-year pre-tax loss of £155.3million is in line with our expectations and we remain on track to break even during the fourth quarter of this year."

Egg, which is 80 per cent owned by Prudential, said it was progressing with its plans outlined last year to become a "global business".

Mr Gratton confirmed: "We are currently exploring commercial partnerships with a number of significant European businesses."

He said a move could be similar to the co-branding deal struck with the high street retailer Boots last year.

Mr Gratton said Egg also planned to launch an online mortgage supermarket offering customers "best-of-breed suppliers".

The bank's joint venture with Boots helped the Egg savings account and the Egg credit card achieve a total of 745,000 customers by the end of last year.

Mr Gratton said he had also been encouraged by the number of customers who had stayed with the brand after an incentive period.

He added monthly spending and balances by account holders was higher than the industry average, while Egg's credit card book exceeded £1billion.